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That number gets divided by (40 hrs/week X 4 weeks) = $ per hour." That should be x weeks or hours = "I add the $ to the labor cost of $/hr and come up with a shop rate of $59/hr." Sounds a little low, judging by the cost of your labor. Jan 14,  · Labor is the number of hours x the hourly rate(in our case, this is each man’s take home hourly rate + the cost of their benefits and other compensation). Overhead is the total annual cost of our overhead expenses divided my the number of man hours our crews work in a year. Sep 17,  · The use of direct labor as the cost driver to allocate overhead has been the norm in manufacturing firms such as furniture industries. In the past, this was acceptable because direct labor was the major cost component in furniture firms, among other wood products industries.
Aug 15,  · Hello Nandita, Initially I was planning to do carpentary works through interiors, but after seeing ur blog, i am interested to take up the wood work by myself and just pay the labour cost. When i enquired with a carpenter, he said, he will be using century ply wood and the rate is /sq ft. Jun 28,  · Material Costs: Usually up to 25% of the total costs. Includes the cost of wood and hardware such as hinges, accessories, fasteners, mechanical parts etc. Labour Costs: Hourly production labour wages multiplied by the total number of hours it may take to complete the job. This can make up to 50% of the total project costs. That number gets divided by (40 hrs/week X 4 weeks) = $ per hour." That should be x weeks or hours = "I add the $ to the labor cost of $/hr and come up with a shop rate of $59/hr." Sounds a little low, judging by the cost of your labor.

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